JCT Report Evaluates Use of Bonds, NMTCs, OZ Incentive for Infrastructure

Tuesday, January 28, 2020 - 9:45am

A report by the Joint Committee on Taxation discusses the ability to use private activity bonds (PABs), new markets tax credits (NMTCs) and the opportunity zones incentive to fund infrastructure projects. “Overview of Selected Provisions and Options Relating to Funding and Financing Infrastructure Investments” was released ahead of a House Ways and Means meeting Wednesday on infrastructure investments. The report describes how existing funding could apply to infrastructure, highlighting eligible areas for PABs, that nearly $2 billion of the $48.3 billion in NMTCs invested in the history of the incentive has gone to specific categories of infrastructure and pointing out restrictions in the OZ incentive regulations to large infrastructure investments. The report also mentions the low-income housing tax credit and historic rehabilitation tax credit, but without specifics on how those incentives could be used for infrastructure.